Until a judge reaches a final verdict – or until 1 June 2027 – the Hollywood studios will remain completely separate, competing operations.

Paramount Skydance and Warner Bros Discovery have agreed to pause their $110bn (£82.8bn) merger until June 2027 while a judge weighs upon a legal challenge against the tie-up. The pause follows lawsuits from 12 US states and the Writers Guild of America (WGA), who argue the deal would harm competition and lead to higher prices for consumers. The decision comes just days after European regulators approved the deal, on the condition Paramount would end a major film distribution partnership with Universal Pictures in the region. With the deal on hold in the US, emergency court hearings have now been cancelled. Despite the court freeze, Paramount and Warner Bros insist that combining their operations is essential to compete with digital streaming giants and tech conglomerates. Paramount hailed the agreement as a "significant win", stating it provides a "direct path to a trial based on the evidence". The company added that a trial is the "fastest" way to prove the merger is "good" for competition, consumers, and creators. The US Department of Justice approved the deal in June. But state officials and Hollywood unions argue that merging two major studios gives one company too much control.